Bank M registers robust Q1 profit

Bank M, the corporate and investment bank, has continued to shine after posting robust first quarter pre-tax profit increase of 48.4 per cent.

The Bank M Deputy Chief Executive officer, Ms Jacqueline Woiso (pictured), said at the news conference that the bank generated a pretax profit of 6.13bn/- in the 2015 first quarter compared to 4.13bn/- of similar quarter last year, after net interest and non-interest incomes generated hefty revenues.

She said the pre-tax profit of 6.13bn/- generated in first three months this year is a third of 20.11bn/- realised in 2014, indicating another good year for the bank.

She added that the net interest income contributed dearly on the first quarter profitability after generating 7.8bn/- versus 6.5bn/- of same quarter last year.

“The net interest income generation is raised with the expansion of the loan portfolio that increased by almost 9.0 per cent in the last quarter,” Jacqueline said, “nevertheless non-interest income also contributed substantially.”

The non-interest revenue increased to 5.82bn/- compared to previous year 3.86bn/-, thanks to mainly foreign currency dealings and commission from trade finance and other banking transactions.

The bank total assets grew closely by 6.0 per cent to 728.04bn/- at the end of the first three months of this year.

The growth in assets is an outcome of additional loans and advances issued within the stated period. The financial results show that customer deposits crossed to 518.65bn/- up by 2 per cent from 509.72bn/- of the fourth quarter year 2014.

The deposits assisted to stabilise the gross loans and advances to total advances at around 90 per cent. The industrial benchmark, according to Central Bank, is 80 per cent.

The bank’s non-performing loans recorded at 2.3 per cent, which is well below the industry average of 5 per cent. Bank M is a mediumsized financial services provider.

In addition to banking services, the bank provides investment advisory and wealth management services.
Source:Daily News, reported from Dar es Salaam, Tanzania
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